Sensex up for second day; bank, auto stocks rise on rate cut hope

The National Stock Exchange index Nifty moved up by 19.50 points, or 0.31 per cent, to 6322.80.

The BSE benchmark Sensex on Tuesday rose 46 points to 21,251.12 to end the day higher for the second day in succession on buying in banking, auto and metal shares in view of sustained foreign capital inflows and positive global cues.

Interest rate sensitive banking and auto scrips gained on the hope that the Reserve Bank of India will cut key rates in its monetary policy meeting on January 28 following retail and headline inflation softening.

Jignesh Chaudhary, Head Of Research, Veracity Broking Services said: "Indian equity markets traded range bound for the better part of the day. There were some negative rallies seen in IT stocks, which put pressure on markets...."

"In the absence of fresh triggers to guide the movement on the either sides, markets are relying on the results declared by the corporate to gauge the direction. Rallies in the bank, auto and metal stocks helped the markets to end on a positive note."